The financial crisis of 2007 to the present is a crisis triggered by a liquidity shortfall in the

United States banking system caused by the overvaluation of assets.[1] It has resulted in the
collapse of large financial institutions, the bailout of banks by national governments and
downturns in stock markets around the world. In many areas, the housing market has also
suffered, resulting in numerous evictions, foreclosures and prolonged vacancies. It is considered
by many economists to be the worst financial crisis since the Great Depression of the 1930s.[2] It
contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions
of U.S. dollars, substantial financial commitments incurred by governments, and a significant
decline in economic activity.[3] Many causes have been suggested, with varying weight assigned
by experts.[4] Both market-based and regulatory solutions have been implemented or are under
consideration,[5] while significant risks remain for the world economy over the 2010–2011
periods.[6]

The collapse of a global housing bubble, which peaked in the U.S. in 2006, caused the values of
securities tied to real estate pricing to plummet thereafter, damaging financial institutions
globally.[7] Questions regarding bank solvency, declines in credit availability, and damaged
investor confidence had an impact on global stock markets, where securities suffered large losses
during late 2008 and early 2009. Economies worldwide slowed during this period as credit
tightened and international trade declined.[8] Critics argued that credit rating agencies and
investors failed to accurately price the risk involved with mortgage-related financial products,
and that governments did not adjust their regulatory practices to address 21st century financial
markets.[9] Governments and central banks responded with unprecedented fiscal stimulus,
monetary policy expansion, and institutional bailouts.

Background and causes

The immediate cause or trigger of the crisis was the bursting of the United States housing bubble
which peaked in approximately 2005–2006.[10][11] Already-rising default rates on "subprime" and
adjustable rate mortgages (ARM) began to increase quickly thereafter. An increase in loan
packaging, marketing and incentives such as easy initial terms and a long-term trend of rising
housing prices had encouraged borrowers to assume difficult mortgages in the belief they would
be able to quickly refinance at more favorable terms. However, once interest rates began to rise
and housing prices started to drop moderately in 2006–2007 in many parts of the U.S.,
refinancing became more difficult. Defaults and foreclosure activity increased dramatically as
easy initial terms expired, home prices failed to go up as anticipated, and ARM interest rates
reset higher.
Share in GDP of U.S. financial sector since 1860[12]

Low interest rates and large inflows of foreign funds created easy credit conditions for a number
of years prior to the crisis, fueling a housing construction boom and encouraging debt-financed
consumption.[13] The combination of easy credit and money inflow contributed to the United
States housing bubble. Loans of various types (e.g., mortgage, credit card, and auto) were easy to
obtain and consumers assumed an unprecedented debt load.[14][15] As part of the housing and
credit booms, the number of financial agreements called mortgage-backed securities (MBS) and
collateralized debt obligations (CDO), which derived their value from mortgage payments and
housing prices, greatly increased. Such financial innovation enabled institutions and investors
around the world to invest in the U.S. housing market. As housing prices declined, major global
financial institutions that had borrowed and invested heavily in subprime MBS reported
significant losses. Falling prices also resulted in homes worth less than the mortgage loan,
providing a financial incentive to enter foreclosure. The ongoing foreclosure epidemic that began
in late 2006 in the U.S. continues to drain wealth from consumers and erodes the financial
strength of banking institutions. Defaults and losses on other loan types also increased
significantly as the crisis expanded from the housing market to other parts of the economy. Total
losses are estimated in the trillions of U.S. dollars globally.[16]

While the housing and credit bubbles built, a series of factors caused the financial system to both
expand and become increasingly fragile, a process called financialization. Policymakers did not
recognize the increasingly important role played by financial institutions such as investment
banks and hedge funds, also known as the shadow banking system. Some experts believe these
institutions had become as important as commercial (depository) banks in providing credit to the
U.S. economy, but they were not subject to the same regulations.[17] These institutions as well as
certain regulated banks had also assumed significant debt burdens while providing the loans
described above and did not have a financial cushion sufficient to absorb large loan defaults or
MBS losses.[18] These losses impacted the ability of financial institutions to lend, slowing
economic activity. Concerns regarding the stability of key financial institutions drove central
banks to provide funds to encourage lending and restore faith in the commercial paper markets,
which are integral to funding business operations. Governments also bailed out key financial
institutions and implemented economic stimulus programs, assuming significant additional
financial commitments.

McKinsey global has released it’s India consumer research and here are a few key insights from
the report:

• Indian income will triple over the next two decades.

• Over the next two decades, the country’s middle class will grow from about 5
percent of the population to more than 40 percent and create the world’s
fifth-largest consumer market.
• In 2005 private spending reached about 17 trillion Indian rupees($372
billion), accounting for more than 60 percent of India’s GDP, so in this respect
the country is closer to developed economies such as Japan and the
United States than are China and other fast-growing emerging markets in
Asia.
• India remains the least urbanized of the emerging Asian economies. Today
only 29 percent of Indians live in cities.

India shining:

• Extreme rural poverty has declined from 94 percent in 1985 to 61 percent

in 2005
• In 1985 93 percent of the population lived on a household income of less than
90,000 rupees a year,by 2005 that proportion had been cut nearly in half, to
54 percent.
• The growth that has pulled millions of people out of poverty is also building a
huge middle class that will be concentrated in India’s urban areas.

• If India can achieve 7.3 percent annual growth over the next 20 years, 465
million more people will be spared a life of extreme deprivation
• About 400 million Indian city dwellers—a group nearly 100 million people
larger than the current population of the United States—will belong to
households with a comfortable standard of living.
Consumer spending in India:

Discretionary spending in India will rise from 52 percent of total private spending today to 70
percent in 2025.

• By 2025 India’s wealthiest citizens will total 24 million, more than the
current population of Australia. By that year too, India’s affluent class will be
larger than China’s comparable segment, projected at about 19 million
people
• Spending on purchases that improve the economic prospects and quality of
life of a person or family—health, education, transport, and communications
—will soar and eventually command a greater share of consumption than
they do elsewhere.
• Despite India’s fondness for cricket and “Bollywood” movies, recreational
products and services will take a smaller slice of household spending there
than in other countries.
• Transportation, already the largest category of expense after food, will take a
bigger portion of household budgets in coming years, exceeding its share in
all of our benchmark countries. The highest growth will come from car
purchases. Categories such as clothing and household goods are expected to
post slower annual growth relative to overall consumption

Rural Market
Last Updated: July 2010

The Indian growth story is now spreading itself to India's hinterlands. The rural consumer market, which grew 25 per
cent in 2008, is expected to reach US$ 425 billion in 2010-11 with 720-790 million customers, according to a white
paper prepared by CII-Technopak, in November 2009. The figures are expected to double the 2004-05 market size of
US$ 220 billion.

The Union Budget for 2010-11 has hiked the allocation under the National Rural Employment Guarantee Act
(NREGA) to US$ 8.71 billoin in 2010-11, giving a boost to the rural economy.

FMCG

According to figures released by market researcher Nielsen, demand for personal care products grew faster in rural
areas than urban areas during the period January-May 2010.

In shampoos, rural demand grew by 10.7 per cent in value terms, while in urban markets, it rose by 6.8 per cent.
Similarly, toothpaste sales grew by 9.1 per cent in rural India and by 4.4 per cent in urban markets.

Several fast moving consumer goods (FMCG) companies such as Godrej Consumer Products, Dabur, Marico and
Hindustan Unilever (HUL) have increased their hiring in rural India and small towns in order to establish a local
connect and increase visibility.

Swiss FMCG giant, Nestle plans to make further inroads into the rural markets. The company has asked its sales
team to deliver "6,000 new sales points every month in rural areas" to expand its presence in Indian villages,
according to Antonio Helio Waszyk, Chairman and Managing Director, Nestle India .

Retail

The rural retail market is currently estimated at US$ 112 billion, or around 40 per cent of the US$ 280 billion Indian
retail market, according to a study paper, 'The Rise of Rural India', by an industry body.

Hindustan Unilever (HUL) is planning to significantly increase its rural reach. According to Harish Manwani,
Chairman, HUL, the quality and quantity of rural coverage will go up to the extent that "what we have done in the last
25 years we want to do it in the next two years." Currently HUL products reach approximately 250,000 rural retail
outlets and the company intends to scale it up to nearly 750,000 outlets in two years time.

Direct selling firm Tupperware India, known for its storage containers plans to foray into the rural markets in the next
two-three years. "We have solid plans for the rural market. We are working on bringing products for rural people as
well," said Asha Gupta, Managing Director, Tupperware India.

Castrol India is pushing its rural sales by building up a distribution infrastructure to reach out to all villages. According
to Ravi Kirpalani, Chief Operating Officer, Castrol India, "Our distribution now reaches 5,000-7,000 towns and
villages, but we are planning to take our products to six lakh villages with a population of less of 5,000.''

Automobiles

Car sales in rural India have been on the increase in the last three years since the government announced various
schemes such as farm loan waiver etc, for the rural population.

Maruti Suzuki's share of rural sales has increased from 3.5 per cent to 17 per cent in the last three years. Mahindra &
Mahindra (M&M) is now selling more Scorpios in rural and semi-urban markets. Scorpio sales have increased from
35 per cent to 50 per cent in the last two years.

Toyota Kirloskar Motor (TKM), in which Japan's Toyota Motor Corp holds an 89 per cent controlling stake, is planning
at selling 40 per cent of its cars in rural markets in India. According to Hiroshi Nakagawa, Managing Director, TKM,
"We are aggressively expanding our dealership footprint in India and quite a significant portion of this will be in
country's heartland. By end of 2010, we plan to have 150 dealers across the country."

Yamaha is also planning a major initiative in rural India by launching more models in the affordable price range in
2010. "We are very strong in Tier 1 and Tier II cities. Now onwards, our focus will be rural India (Tier III towns). We
will launch more models in the affordable price range to dominate the rural market," according to Pankaj Dubey,
National Business Head, India Yamaha Motor. At present, around 15 per cent of its sales come from the rural market
and Dubey sees this demand increasing substantially in 2010.

Tata Motors is also making efforts to sell its pick up truck Ace in rural markets. It has already opened 600 small
outlets for the Ace in rural and semi-urban markets. It has also tied up with 117 public sector, gramin (rural) and co-
operative banks to help small entrepreneurs buy the vehicle.

INDIAN ADVANTAGE

IMPORTANCE OF EDUCATION

Education is the process of instruction aimed at the all round development of boys and girls. Education
dispels ignorance. It is the only wealth that cannot be robbed. Learning includes the moral values and
the improvement of character and the methods to increase the strength of mind.
HIGHER AND PROFESSIONAL EDUCATION IN INDIA

Higher education in India is gasping for breath, at a time when India is aiming to be an important
player in the emerging knowledge economy. With about 300 universities and deemed universities,
over 15,000 colleges and hundreds of national and regional research institutes, Indian higher
education and research sector is the third largest in the world, in terms of the number of students it
caters to.

However, not a single Indian university finds even a mention in a recent international ranking
of the top 200 universities of the world, except an IIT Kharagpur ranked at 41, whereas there were
three universities each from China, Hong Kong and South Korea and one from Taiwan.

On the other hand, it is also true that there is no company or institute in the world that has not
benefited by graduates, post-graduates or Ph.D.s from India be it NASA, IBM, Microsoft, Intel, Bell,
Sun, Harvard, MIT, Caltech, Cambridge or Oxford, and not all those students are products of our IITs,
IIMs, IISc/TIFR or central universities, which cater to barely one per cent of the Indian student
population. This is not to suggest that we should pat our backs for the achievements of our students
abroad, but to point out that Indian higher educational institutions have not been able to achieve the
same status for themselves as their students seem to achieve elsewhere with their education from
here.

While many reasons can be cited for this situation, they all boil down to decades of feudally
managed, colonially modelled institutions run with inadequate funding and
excessive political interference. Only about 10 per cent of the total student
population enters higher education in India, as compared to over 15 per cent in
China and 50 per cent in the major industrialised countries. Higher education is
largely funded by the state and central governments so far, but the situation is
changing fast. Barring a few newly established private universities, the government
funds most of the universities, whereas at tCountries in order of total
speakers
As an
Percent
First additiona
Country of Populatio
Total language l Comment
populati n
language
on

United 251,388,3 96% 215,423,5 35,964,74 262,375,15 Source: US Census

States of 01 57 4 2 2000: Language Use
America and English-Speaking
Ability: 2000, Table 1.
Figure for second
language speakers
are respondents who
reported they do not
speak English at
home but know it
"very well" or "well".
Note: figures are for
 population age 5 and
older

Figures include both

86,125,22 those who speak
1 second English as a second
language language and those
125,344,7 speakers. 1,028,737, who speak it as a
India 12% 226,449
36 38,993,06 436 third language. 2001
6 third figures.[53][54] The
language figures include
English speakers, but
speakers [55]
not English users.

Figures are for

speakers of Nigerian
Pidgin, an English-
based pidgin or
creole. Ihemere gives
a range of roughly 3
to 5 million native
speakers; the
midpoint of the range
79,000,00 >75,000,0 148,000,00 is used in the table.
Nigeria 53% 4,000,000
0 00 0 Ihemere, Kelechukwu
Uchechukwu. 2006.
"A Basic Description
and Analytic
Treatment of Noun
Clauses in Nigerian
Pidgin." Nordic
Journal of African
Studies 15(3): 296–
313.

United 59,600,00 58,100,00 Source: Crystal

98% 1,500,000 60,000,000
Kingdom 0 0 (2005), p. 109.

Philippin 48,800,00 58%[56] 3,427,000 43,974,00 84,566,000 Total speakers:

es 0 [56]
0 Census 2000, text
above Figure 7.
63.71% of the 66.7
million people aged 5
years or more could
speak English. Native
speakers: Census
1995, as quoted by
Andrew González in
The Language
 Planning Situation in
the Philippines,
Journal of Multilingual
and Multicultural
Development, 19
(5&6), 487–525.
(1998). Ethnologue
lists 3.4 million native
speakers with 52% of
the population
speaking it as a
additional language.
[56]

Source: 2001
Census – Knowledge
of Official Languages
and Mother Tongue.
The native speakers
figure comprises
25,246,22 17,694,83 122,660 people with
Canada 85% 7,551,390 29,639,030
0 0 both French and
English as a mother
tongue, plus
17,572,170 people
with English and not
French as a mother
tongue.

Source: 2006 Census.

[57]
The figure shown
in the first language
English speakers
column is actually the
number of Australian
residents who speak
only English at home.
The additional
18,172,98 15,581,32
Australia 92% 2,591,660 19,855,288 language column
9 9
shows the number of
other residents who
claim to speak
English "well" or
"very well". Another
5% of residents did
not state their home
language or English
proficiency.
 Note: Total = First language + Other language; Percentage = Total / Population

he college level, the balance is increasingly being reversed.

English as a global language

See also: English in computing, International English, and World language

Because English is so widely spoken, it has often been referred to as a "world language", the
lingua franca of the modern era,[21] and while it is not an official language in most countries, it is
currently the language most often taught as a foreign language. Some linguists believe that it is
no longer the exclusive cultural property of "native English speakers", but is rather a language
that is absorbing aspects of cultures worldwide as it continues to grow.[21] It is, by international
treaty, the official language for aerial and maritime communications.[63] English is an official
language of the United Nations and many other international organisations, including the
International Olympic Committee.

English is the language most often studied as a foreign language in the European Union, by 89%
of schoolchildren, ahead of French at 32%, while the perception of the usefulness of foreign
languages amongst Europeans is 68% in favour of English ahead of 25% for French.[64] Among
some non-English speaking EU countries, a large percentage of the adult population can
converse in English — in particular: 85% in Sweden, 83% in Denmark, 79% in the Netherlands,
66% in Luxembourg and over 50% in Finland, Slovenia, Austria, Belgium, and Germany.[65]

Books, magazines, and newspapers written in English are available in many countries around the
world, and English is the most commonly used language in the sciences[21] with Science Citation
Index reporting as early as 1997 that 95% of its articles were written in English, even though
only half of them came from authors in English-speaking countries.

The impact of the English language globally has sometimes had a large impact on
other languages, leading to language shift and even language death[66] and to
claims of "English Language Imperialism".[67] English itself is now open to language
shift as multiple regional varieties feed back into the language as a whole.[67] For
this reason, the 'English language is f2. Foreign Exchange Option Trading Combines
FOREX and Options Trading

Foreign Exchange Option trading has the benefits of both the FOREX market and options
trading, so you see more benefits. Foreign currency options open up the investment market even
further, so you have more investment options available to meet your investing needs.

3. FOREX Market Has High Liquidity

The foreign currency exchange market is considered the most liquid market in the world. This
high level of liquidity makes it a terrific market for investment, because investments are very
easily converted into cash. Because the market consists of currencies, there is never a problem in
cashing out on an investment.

4. Foreign Exchange Option Trading Has High Volume

The foreign exchange market is one of the biggest markets in the world, with an extremely high
volume. This means many opportunities to invest in foreign currency options. There is never a
problem finding the type of trade that you are looking for because of the market volume.

5. Small Investment Is Required With Foreign Exchange Option Trading

A foreign exchange trader does not need to have a large amount to invest to get in on the trading
activity. An amount as small as a couple hundred dollars may very well be enough to get started
in foreign exchange option trading. This amount is much less than what is required in many other
investment options. This allows you to start investing and seeing returns much faster.

6. Foreign Exchange Option Trading Offers Twenty Four Hour Trading

The foreign exchange market is the only market that is open twenty four hours a day, around the
clock. This means you never have to wait for the market to open before you can trade. This
benefit makes the FOREX market unique and one of a kind. The market travels the globe, and
trades can be arranged any hour of the day or night, no matter what the date, day, or time is. This
makes the market trading hours very convenient for all traders no matter where they live.

7. Foreign Exchange Option Trading Has Electronic Convenience

The FOREX market offers electronic convenience, because the entire market and all trading
done on it are done electronically. There is no physical location for the market, unlike stocks and
Wall Street. This means that all a foreign exchange trader needs to initiate a trade is a computer
with an Internet connection or a telephone. This makes trading foreign currency options very
easy and convenient.

8. Trading Losses Can Be Managed By Foreign Exchange Hedging

Foreign Exchange option trading allows trading losses and risks to be managed by hedging. This
can keep traders from suffering huge losses of investment capital, by allowing them to hedge
their investments by using options.

9. Foreign Exchange Option Trading Always Has a Bull Market

The Foreign Exchange market is always a bull market. This market always has currencies that
are rising in value, as well as those that are falling in value. This means that a foreign exchange
trader can always find bullish conditions with some currencies traded on the market.

10. Fewer Manipulation Risks with Foreign Exchange Option Trading

Because The FOREX market is a global market, there is a lower manipulation risk. Unlike
stocks, currencies can not be manipulated as easily, so this risk is much lower. The size of the
market also makes manipulation extremely unlikely.orever evolving'.